May 22, 2024
Calcium Formate Market

Calcium Formate Market to Witness High Growth owing to Improved Oil Well Drilling Efficiency

The global calcium formate market caters to various end-use industries such as construction, oil well drilling, detergents, leather, and concrete accelerators amongst others. Calcium formate is primarily used as a drill-fluid additive in oil and gas exploration activities. It aids in controlling the weight of drilling fluids, improve cuttings removal, and enhance wellbore stability thereby leading to enhanced drilling efficiency.

The global Calcium Formate Market is estimated to be valued at US$ 860 million in 2024 and is expected to exhibit a CAGR of 5.5% over the forecast period from 2024 to 2031.

Key Takeaways
Key players operating in the calcium formate market are SIDLEY CHEMICAL CO., LTD., Zouping Fenlian Biotech Co., Ltd., American Elements, Wujiang yingchuang chemical co., ltd., Minerals Technologies Inc., Cerne Calcium Company, LANXESS, Perstorp Holding AB, Chongqing Chuandong Chemical (Group) Co. Ltd., Zibo ruibao chemical Co., LTD., Henan Botai Chemical Building Material Co., Ltd., Shandong Baoyuan Chemical Co. Ltd, Jiangxi Kosin Frontier Technology Co., Ltd. Key opportunities lying in the market include rising demand from concrete superplasticizers application. Technological advancements like development of bio-based calcium formate are expected to boost the market growth.

Market drivers
Rising oil & gas exploration & production activities are expected to propel the demand for calcium formate over the forecast period. According to the IEA, global oil demand is projected to rise up to 104 MBOPD by 2030. This rise in oil & gas exploration will augment the demand for drilling fluids additives like calcium formate which improves drilling efficiency. Increasing construction activities in Asia Pacific region due to rapid urbanization will also drive the calcium formate consumption.

Current Challenges in Calcium Formate Market
The calcium formate market is currently facing challenges due to rising input costs and supply chain issues. The COVID-19 pandemic has disrupted global supply chains and increased freight costs. Raw material prices have also been volatile over the past year due to high inflation. This is putting pressure on calcium formate manufacturers as their margins get squeezed. Demand uncertainty is another major challenge as changes in end use industries like construction and agriculture affect calcium formate demand. Strict environmental regulations around the use and disposal of formates also pose a compliance burden for players. Overall, balancing costs amid input price volatility while meeting quality and environmental standards remains a key priority area.

SWOT Analysis
Strength: Wide range of applications in construction, agriculture, leather industry etc. due to de-icing and dust suppression properties.
Weakness: Highly dependent on performance of end use industries which impacts demand cyclically. Raw material price volatility also affects margins.
Opportunity: Growing infrastructure investment in developing nations fostering concrete admixtures demand including calcium formate.
Threats: Stringent environmental norms around formate usage and disposal in Europe and North America. Competition from substitute products.

Geographical Regions with Highest Market Concentration
The Asia Pacific region accounts for the largest share of the global calcium formate market in terms of value. This is attributed to high growth industries like construction and agriculture as well as presence of emerging economies with rising infrastructural investments. China is the largest producer and consumer market. North America and Europe also have substantial market size due to developed end use industries.

Fastest Growing Geographical Region
The calcium formate market in South and East Asia regions is witnessing the fastest growth over the forecast period. Countries like India, Indonesia, Vietnam etc. are experiencing rapid economic and industrial development. Increasing agricultural mechanization and government support for rural development is propelling formate demand in these nations. Growing construction activities associated with urbanization is another key growth driver.

Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it